What is a ground lease?

A ground lease is a type of real estate lease in which a tenant pays to rent a piece of land for a set period of time. The tenant has exclusive rights to use the land for specific purposes, typically agricultural or industrial. In Florida, ground leases are used by both agricultural and commercial businesses. Agricultural businesses rent land to cultivate crops, raise livestock, and grow trees. The renter is typically responsible for upkeep and any improvements to the land. The landlord has the right to inspect the property at any time, and the lease may include conditions on the renter’s use of the property. Commercial businesses rent land for industrial or business use. This includes construction, operation, and maintenance of roads, utilities, or buildings. The renter is responsible for keeping up with any repairs and improvements the lease outlines. The landlord typically has more control and influence over the land than when it is used in agricultural purposes. Ground leases can be beneficial to both parties. The tenant is able to use the land for a set period of time without having to purchase it outright, and the landlord can benefit from the rental income. Ground leases are a common form of real estate leasing in Florida and can result in a beneficial agreement for both the tenant and landlord.

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What is a ground lease?

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